Altcoin Anguish Continues as Bitcoin Bounces Back Reclaiming 70% Dominance
Weekend trading has been largely lack luster as usual. Bitcoin spent most of the time hovering just above $10k while the altcoins stayed in bed. A Monday morning push in Asia has sent BTC up to a five day high but its brethren have yet to react.
Bitcoin Dominance Reclaims 70%
A few hours ago Bitcoin hit resistance at the 50 day moving average in a short surge up to $10,650. Resistance was too strong to overcome here though so it retreated back to just below $10,400 where it currently trades. The next leg up should take BTC to just below $10,800 where the next level of resistance lies.
BTC is dominating market movements this Monday as $8 billion flows back into total market capitalization. With dominance back at 70 percent according to Tradingview.com, the move spells more pain for altcoins which are still getting battered. The charts show market share for BTC tapping 71.29 percent a few hours ago during the spike.
BTC dominance – Tradingview.com
At the time of writing, Bitcoin is one of the top performing crypto assets in the top 25, adding over 2.5 percent on the day. Only Binance Coin has had a better gain as the rest remain flat. In fact BNB is the only altcoin among the majors that has made any gains against BTC this year.
Trader and analyst Luke Martin has taken a look at the worst performing altcoins of 2019 and the picture is not a pretty one for them.
“Major alt performance versus Bitcoin over the past year.
Coins that were beating $BTC at one point but are now down at least ~50%: $XRP, $EOS, $XMR, $XLM, & $TRX
Biggest losers: $BCH, $ZEC, $XLM, $ETH
Winner: $BNB”
Major alt performance versus Bitcoin over the past year.
Coins that were beating $BTC at one point but are now down atleast ~50%: $XRP, $EOS, $XMR, $XLM, & $TRX
Biggest losers: $BCH, $ZEC, $XLM, $ETH
Winner: $BNB
h/t @coinmetrics pic.twitter.com/NNGxhJCTik
— Luke Martin (@VentureCoinist) August 25, 2019
Ethereum has been the surprise this year with very little momentum and certainly no ICO boom to lift the world’s second largest digital asset. At the moment ETH is still on the floor, trading around $190, down over 85 percent from its peak last year.
Economist Alex Krüger confirmed the sorry state of Ethereum wallets, 74 percent of which are at a loss.
For any address with a positive balance, @intotheblock identifies avg price at which tokens were acquired, indicating if the address is at profit or loss.
Addresses at profit:$BTC 79%$LINK 56%
Addresses at loss:$ETH 74%$ADA 75%$ICX 94%$FET 93%$ZEC 95%
h/t @mbeaudroit pic.twitter.com/4kOlhFui4i
— Alex Krüger (@krugermacro) August 24, 2019
Most of the replies regarding the ‘winner’ claimed that BNB should not be compared to the rest of the altcoins because it behaves more like a security and is largely controlled by the exchange that owns and manages it.
At the moment the altcoin markets are still flat with Bitcoin continuing to flex its digital muscles and eat away at their market share, even with these minor price pumps.
Image from Shutterstock
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Martin Young, Khareem Sudlow